Sport-haley And Spalding Sports Worldwide Announce Expansion Of Ben Hogan Apparel Licensing Agreement
Denver, Colorado - July 23, 2002

- Based on the early success of the BEN HOGAN apparel collections launch, Sport-Haley Inc. and Spalding Sports Worldwide, Inc. today announced an international expansion plan that will include the United Kingdom, Sweden, Mexico, and various Caribbean countries as part of a second phase distribution campaign.

The two companies have modified their licensing agreement, which began in May 2001, granting Sport-Haley a license to design, and manufacture a complete collection of men's premium golf apparel under the BEN HOGAN brand name. The licensing agreement was initially limited to the United States.

"Our initial launch of the BEN HOGAN apparel collections has exceeded our expectations under difficult market conditions," stated Kevin M. Tomlinson, Sport-Haley's Chief Executive Officer. "It seemed natural for our companies to expand on an international basis."

In addition to the UK, Sweden and Mexico, the expansion includes Aruba, Cayman Islands, Jamaica, Dominican Republic, Bahamas, and British Virgin Islands.

"We are currently identifying other distributors for those markets and will look to leverage a combination of Spalding subsidiaries and independent distributors on a per-location basis," added Tomlinson.

"Our expanded agreement with Sport Haley is a great step in building upon our established BEN HOGAN brand," stated Tammy Talerico, director of worldwide licensing for Spalding. "The initial fall 2002 launch of our U.S. apparel line has been well received, and we anticipate the line will be embraced by the international marketplace."

Sport-Haley, Inc. designs, contracts for the manufacture of, and markets quality men's and women's fashion golf apparel and outerwear under the HALEY label and premium men's apparel under the Ben Hogan label. The Company's fashion golf apparel is known for its innovative styling, high quality fabrics, generous fit and classic appearance. HALEY apparel is primarily sold in the premium and mid-priced markets through a network of independent sales representatives and distributors to golf professional shops, country clubs, and resorts across the United States and internationally. The Company also sells HALEY apparel to corporate, college, university and other markets. Ben Hogan apparel is marketed to elite golf professional shops, upscale resorts and exclusive department stores within the United States.

Spalding Sports Worldwide is the nation's first full-line sporting goods company. Its leadership and innovative products have led to revolutionary breakthroughs in virtually every major sporting goods product category. Under the Spalding umbrella are the STRATA, TOP-FLITE, ETONIC, BEN HOGAN, and DUDLEY brands. To find more information on Spalding, visit their website at http://www.spalding.com or call their Consumer Relations Department at 800-SPALDING (772-5346).

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: When used in this release, the words "may," "will," "expect," "anticipate," "continue," "estimate," "project," "intend," "believe," and similar expressions are intended to identify forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 regarding events, conditions and financial trends including, without limitation, business conditions and growth in the fashion golf apparel market and the general economy, competitive factors, and price pressures in the high-end golf apparel market; inventory risks due to shifts in market demand and/or price erosion of purchased apparel, raw fabric and trim; cost controls; changes in product mix; and other risks or uncertainties detailed in Securities and Exchange Commission filings made by Sport-Haley, Inc. Such statements are based on management's current expectations and are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, the actual plan of operations, business strategy, operating results and financial position of Sport-Haley, Inc. could differ materially from those expressed in, or implied by, such forward-looking statements.